American Battery Technology Company (ABAT) has secured U.S. Environmental Protection Agency approval to recycle the end‑of‑life lithium‑ion batteries from the largest cleanup operation in EPA history, a fire that occurred at a grid‑scale battery energy storage system in Northern California in January 2025.
The cleanup will involve up to 100,000 battery modules and is expected to generate roughly $30 million in proceeds from recovered materials, including lithium, cobalt, nickel, aluminum, steel, and copper. The damaged batteries are classified as CERCLA waste, a designation that limits the number of recyclers that can safely process them.
ABAT’s Nevada recycling facility has undergone a rigorous audit and review process and is now one of the only recyclers in the Western United States authorized to receive such hazardous, damaged material. This capability places ABAT at the forefront of handling high‑risk battery waste that other recyclers cannot process, expanding its operational footprint and adding a substantial new revenue source to its already growing recycling business.
Prior to this contract, ABAT’s recycling revenue had accelerated sharply: Q3 FY2025 revenue from recycled battery materials was $1.0 million, Q4 FY2025 surged 183% to $2.8 million, and full‑year 2025 revenue jumped 1,149% to $4.3 million. The $30 million potential from this cleanup represents a significant upside that could materially strengthen the company’s financial position and accelerate its path toward a fully integrated closed‑loop battery material supply chain.
CEO Ryan Melsert said, "This unprecedented cleanup effort highlights the critical importance of building and deploying advanced domestic critical mineral recycling infrastructure capable of addressing the growing challenges of managing damaged lithium‑ion batteries in a safe and responsible manner. We are proud that we have established ABTC as one of the only recyclers in the Western US to be capable of receiving CERCLA materials, and that we have already been processing truckloads of CERCLA material from this project for the past several weeks."
The announcement is expected to reinforce investor confidence in ABAT’s strategic positioning as a domestic provider of closed‑loop battery material solutions. By securing this contract, the company not only gains a substantial new revenue stream but also strengthens its competitive moat, positioning it to win additional large‑scale cleanup projects and further solidify its role in the growing U.S. battery recycling market.
The project underscores the increasing importance of domestic battery recycling infrastructure in the United States, aligning with national policies aimed at reducing reliance on foreign sources for critical battery materials and supporting the broader transition to electric vehicles and grid‑scale energy storage. ABAT’s ability to handle CERCLA‑classified waste gives it a unique advantage in a niche but expanding segment of the recycling industry, potentially opening doors to future cleanup opportunities and reinforcing its leadership in the critical battery materials market.
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